Ricardo Pillai
3 min read
In This Article:
We came across a bullish thesis on IAC Inc. on High Growth Investing’s Substack by Stefan Waldhauser. In this article, we will summarize the bulls’ thesis on IAC. IAC Inc.'s share was trading at $ 37.14 as of June 20th. Please note that the original thesis was published in November.
A closeup of a digital newsroom, highlighting the complexity of the modern media landscape.
IAC, a long-standing holding in the author’s model portfolio, continues to trade well below intrinsic value, with shares at $47 and a $4.0 billion market cap following its Q3 2024 report. The planned 2025 spin-off of Angi, IAC’s home services platform, represents the company’s 10th such move and will distribute roughly 5 Angi shares per IAC share. Despite Angi’s recent 30% price drop, restructuring efforts under new CEO Jeff Kip have stabilized the business, with an expected 2024 EBITDA of $130–150 million.
Still, Angi trades at a steep discount to its improving fundamentals. IAC’s 21.8% stake in MGM—worth ~$2.4 billion—is now its largest asset, growing due to MGM’s ongoing buybacks. This alone nearly covers IAC’s market cap when combined with $1.1 billion in cash. Thus, all other holdings are effectively valued at zero.
Yet, the unlisted portfolio is substantial. Dotdash Meredith, post-merger with Meredith, is recovering, with 2024 EBITDA projected at $300 million; it could be worth ~$2.2 billion. Turo, the car-sharing leader, may IPO at a $3 billion+ valuation, valuing IAC’s 32% stake at ~$1 billion.
Care, acquired in 2020 and profitable, is conservatively valued at $500 million. Vivian Health, EmployBridge shares, and legacy search assets could be worth another $200 million. Collectively, the unlisted assets are estimated at $3.9 billion, implying ~$46/share in hidden value.
The Angi spin-off may reduce structural complexity and better showcase this mispricing. With potential catalysts in 2025, including the Turo IPO or exit, the author remains confident that IAC is primed for a swift re-rating once the market acknowledges its sum-of-the-parts value.
Previously, we covered a bullish thesis on IAC Inc. by Boyar Research in February 2025, which highlighted the company’s proven spin-off strategy, management reshuffle, and a renewed focus on capital allocation amid ongoing turnarounds at Angi and Dotdash Meredith. The company’s stock price has depreciated approximately 20% since our coverage. This is because Angi’s underperformance and market skepticism on restructuring masked the sum-of-the-parts value. The thesis still stands as the spin-off and improved fundamentals at core holdings continue to signal long-term upside. Stefan Waldhauser shares a similar view but emphasizes the extreme undervaluation of IAC’s unlisted assets and the potential re-rating post-Angi spin-off and Turo’s IPO.
